Bank of Uganda and Crane Bank (in receivership) have filed an appeal against a decision by Commercial Court that recently ruled in favor of City businessman Sudhir Ruparelia in a 397bn case.
The High Court Judge Justice Wangutusi on Monday 26 August 2019, decided that Crane Bank (in receivership) did not have any jurisdiction to file a civil suit No. 493 of 2017 against Sudhir Ruparelia and Meera Investments Limited, and therefore dismissed the suit.
Crane Bank However, is dissatisfied with the decision of Justice Wangutusi and has served a copy of Notice of Appeal to Kampala Associated Advocates, the legal representatives of Mr. Sudhir Ruparelia and Meera Investments Limited.
The Notice of appeal application 320 of 2019 was been filed in the High Court on Tuesday August 27, 2019.
On June 30, 2017, Crane Bank Limited (in receivership) took Mr. Ruparelia and Meera Investments Limited to court for causing financial loss amounting to UGX. 397bn to Crane Bank in fraudulent transactions and land title transfers.
Crane Bank (in receivership) sought high court to compel Mr. Ruparelia to pay back more than $92m as compensation for breach of fiduciary duty.
While justice Wangutusi dismissed the UGX. 397bn case against Sudhir on a technicality alleging that Crane Bank lost its powers to sue and to be sued, this rendering its suit a nullity, Crane bank maintains that the receivership is a management situation, and hence no legal change as to capacity of a company to sue and be sued.